America's Largest Lithium Mine Thacker Pass Set for Production Next Year, GM Locks In All Phase 1 Capacity
Miles Bennett
Thacker Pass, the largest known lithium deposit in the U.S., is targeting first production by late next year. GM has locked in all Phase 1 output for 20 years with a $625 million stake — but the mine's untested clay-extraction technology has kept the stock under heavy pressure.
How big is this mine?
Thacker Pass sits in Nevada, operated by Lithium Americas. It holds the largest known lithium reserves in the United States.
Phase 1 alone can supply batteries for roughly 850,000 EVs — or equivalent capacity for AI data centers, drones, robotics, and military systems.
This means → a single phase would lift U.S. lithium output to 10× its current level, a concrete step toward reducing dependence on Chinese lithium processing.
Who is paying, and how much?
GM invested $625 million for a 38% equity stake and locked in all Phase 1 output for 20 years.
The U.S. Department of Energy added a $2.2 billion low-interest loan. The federal government also holds a 5% stake in Lithium Americas and a separate 5% interest in the mine itself.
In plain terms = the government is both lender and shareholder — mirroring exactly how China backs its own metals champions. This is an industrial investment with a national-security label.
Why is the stock falling anyway?
Virtually all global lithium comes from hard-rock spodumene — a lithium-bearing mineral — or salt-lake brine. Thacker Pass holds its lithium in a clay mineral never mined at commercial scale.
Lithium Americas shares have dropped 56% from their October peak and are down 8.3% year-to-date. Australian spodumene miners Mineral Resources, PLS Group, and Liontown Resources are up 25%, 36%, and 22% over the same period.
This reflects a specific doubt: not the size of the deposit, but whether the clay process actually works. CEO Jon Evans put it bluntly: "The moment I pull the first ton of lithium out, the stock re-rates — because the question has always been 'can you really do it?'"
Is Phase 2 expansion taking shape?
Phase 2 targets an additional 40,000 tonnes of lithium over the next decade. GM holds a right of first refusal on 38% of that output plus options on the rest.
Financing has not started, but multiple companies are already in line. One has offered $100 million upfront.
This means → demand-side interest is not the bottleneck. Supply-side risk is — whether clay extraction can be proven at scale will determine if Phase 2 moves forward.
Has the mine's strategic role shifted?
CEO Evans says the landscape has fundamentally changed: "From last summer to this summer, it's a completely different picture — it's not just EVs anymore; we're part of energy-security policy now."
Chris Berry, president of metals research firm House Mountain Partners, adds: "There are a lot of people in Washington watching Lithium Americas. The potential customer list will be long."
In plain terms = this mine has been upgraded from an "EV raw-material project" to a "national supply-chain security project." Whether it delivers on that status hinges on one thing: commercial proof of clay-based lithium extraction, coming only after production starts late next year.
Content is for reference only, not financial advice.